LISBON (Reuters) - Portuguese paper pulp producer Altri reported on Thursday a nearly five-fold rise in its net profit to 123.7 million euros ($136.79 million) last year, boosted by price increases and record pulp sales.
"Financial performance was strongly impacted by record production of cellulose fibres, but also by the increase in sales, in a period marked by high pulp prices in international markets," the company said in a statement.
As demand increased in Europe, the international price index for bleached hardwood kraft pulp rose to $1,140 a ton at the end of 2021 from $680 a year earlier.
Pulp production hit a record high of 1,126,000 tons, a 2.2% rise from 2020.
Total sales increased 38% to 793.4 million euros as the company sold a record 1,153,000 tons of pulp, of which 86% were exported to markets outside Portugal.
Core earnings or EBITDA increased 132.7% to 227.7 million euros and its margin improved to 28.7% from 17% in 2020.
The company said that in the pulp segment it continued to see "strong demand" in Europe in early 2022, especially for printing and writing paper.
Some challenges persist on the supply side, the company said, adding it was also worried with prolonged strikes in northern Europe, which have a direct impact on the dynamics of the European market.
($1 = 0.9043 euros)